Re: PHB on the loose
Verizon has been infected with the C suite mentality that wireless is the only way to go for quite some time1.
Perhaps they are right2.
If that is truly the case, then would it be better to separate the wireline/FiOS service from the wireless services, and spin them out as a separate company to the shareholders who can put in place executives focused on wireline/FiOS service??
Then those in charge of wireless will not have these "distractions" to contend with.
Then those in charge of wireline/FiOS services will not have to contend with the 'desires' of the executives in charge of wireless.
OR do those wireless executives like the prospect of milking the wireline COW for all of the milk it has in order to "invest" in wireless services??
Remember, in most states, wireline (aka "copper") is a regulated monopoly with a guaranteed rate of return. Wireless is NOT!
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1 From: http://seekingalpha.com/article/2993436-the-future-of-verizon-according-to-cfo-fran-shammo
The "money part":
<quote>
Granted, the flipside to focusing so much on wireless is that Verizon's wireline business often gets forgotten. While wireline includes declining businesses like home phone services it also includes growing services like FiOS broadband internet and TV. If Shammo's guidance for wireline CAPEX to decline is any indication of the future, then Verizon clearly sees more upside in its wireless business for the future.
As a result, Verizon has begun to sell legacy wireline assets in order to pay for investments and acquisitions in its wireless space. As explained in a previous article, Verizon's decision to spend $130 billion for full control of Verizon Wireless makes it difficult for the company to be aggressive in debt markets from this point forward, and because it heavily diluted the stock during the acquisition it can't use public offerings to find cash. That means Verizon must sell assets.
</quote>
2 From: http://www.engadget.com/2012/09/20/verizon-cfo-claims-unlimited-data-is-dead/
An insight into Verizon's "way of thinking":
<quote>
"La la la la. I can't hear you." Verizon's CFO, Fran Shammo, might've just as well made those comments with his hands firmly cupped over his ears, as the firm's chief number cruncher told attendees at today's Goldman Sachs investor conference, "Unlimited is just a word, it doesn't really mean anything." While Sprint and T-Mobile would certainly take issue with that statement, Shammo then dug the hole deeper by saying, "That whole unlimited thing, I think, is going by the wayside." These comments were made in the context of Shammo playing up the carrier's shared data plans, wherein he explained his belief that consumers "think they consume a lot more data than they really do." Shammo also revealed that Verizon has converted more subscribers and devices over to the new scheme than it'd initially anticipated.
</quote>
IOW - MILK THAT COW!!!!!